305+Pips on EURUSDIin One Day With My Aggressive Pivot Trading Strategy

All of these trades yielded:

Total Profits: (+32pips +68pips +102pips +32pips +71pips) =305+pips on the EURUSD in one
day!
Gig System Trade Setup:
o 15 minutes Chart
o Pivot points calculation
o Trend lines drawing
o Channels
o Moving Average( 50SMA)

How it works:
I use 15minute timeframe because it allows catching the best entry and exits opportunities.
Hourly chart for example, when the signal is there is quite too late already to react/enter.
Each morning I start by calculating fresh pivots from midnight to midnight.
I study price behavior in the first 7hours of the day. (Europe/London open around 7.30a.m/8a.m
GMT)
What I do before 7amGMT in preparation for the London Open:
o Calculate and place major S/R levels on 15minutes chart.
o Study price behaviour in relation to these levels, Moving Averages, trendlines and the channel
that normally forms, between new day break and 7amGMT.(Initial Early Morning ChannelIEMC)
o Check my Forex news calendar @ forexfactory for upcoming news
o Place predictive trades using pending order and occasionally market order depending upon
price behaviour between new day break and 7amGMT.
o

Price behaviour between new day break and 7amGMT

o Where did price open in relation to the PP (pivot point), above or below? The answer to this
provides the first clue to traders biases for the day.
o Did market smile a good morning @ Long trade for the day? [If market opened up above @

PP or a small distance away, up above PP, I look for opportunity to go long for the day.]
o Is price above moving average?
o Did market smile a good morning @ Short trade for the day? [If market opened down below @
PP or a small distance away, down below PP, I look for opportunity to go short for the day.]
o Is price below moving average?
o Did market exactly open @ PP or away from PP?
o Market has opened a little away from pivot. Now has price pulled back to PP?
o May be it hasnt pulled back between this time under consideration. Price may pullback to PP
later in the day. Now can you put price in a range, a channel (IEMC)? I found out this range
could persist and could be traded. (Initial Early Morning Channel Strategy)
o Has price zigzagged along PP? How big is the range? Can you put a channel on it?

Price behaviour between new day break and 7amGMT(see attachment)

The above chart is a EURUSD 15 minute chart illustrating how price behaved from daybreak to
7amGMT on the Wednesday 21st July2010.
Pivot and Major S/R obtained by virtue of data from previous day include: R3=1.3184,
R2=1.3105, R1=1.2995, PP=1.2916, S1=1.2806, S2=1.2727 S3=1.2617.
As you can see, the dotted line represents midnight/Daybreak of previous day/new day,
20th/21st July 2010.
The vertical aqua line represents 7amGMT, i.e 7hrs after new daybreak.
Can you see price behaviour between these times? Price is in a channel of 34pips (purple to
purple) .This is my Initial Early Morning Channel. I will illustrate how I trade such channels under
my Initial Early Morning Channel strategy in one of my variations.
Can you now predict with some certainty the direction of price from here?
This is a case for my strategy VARIATION 1A, and Ill be showing how to trade this.

VARIATION 1A
I have a variation1A case when ,as in chart 1.0, market opens below price from dawn of new
day, stays in some consolidation sort of up to like 7amGMT, thereby price, forming a tradable
channel(IEMC) for our strategy(20pips +).
If a new day passes as a candidate for variation1A, I trade the following strategies:
A. Initial Early Morning Channel strategy
B. Pivot level strategy
C. Appropriate Major S/R level strategy (This strategy is sometimes delayed, as price normally
must make some journey into the day to validate the strategy at this level.)
Looking at chart1.0, I will place the following trades:
A. Initial Early Morning Channel strategy
@lowerBand of Channel:
1) Buy Limit : Entry Price = 1.2874
Profit Target = 1.2906 (@ UpperBand of Channel)
Profit = +32pips
2) Sell Stop : Entry Price = 1.2874
Profit Target = 1.2806 (@ S1)
Profit = +68pips
@UpperBand of Channel:
3) Sell Limit : Entry Price = 1.2906
Profit Target = 1.2874 (@ LowerBand of Channel)
Profit = +32pips
4) Buy stop : Entry Price = 1.2914 i.e(1.2906+8pips)
Profit Target = 1.2956 i.e (Midway b/n PP and R1)
Profit = +42pips

B. Pivot level strategy

5) Sell Limit : Entry Price = 1.2908 i.e (1.2916-8pips)

Profit Target = 1.2806 (@ S1)
Profit = +102pips
6) Buy stop : Entry Price = 1.2924 i.e(1.2916+8pips)
Profit Target = 1.2956 i.e (Midway b/n PP and R1)
Profit = +32pips
C. Appropriate Major S/R level strategy ( S1 Level in This Case)
7) Sell Stop: Entry Price = 1.2806i.e (S1)
Profit Target = 1.2735 (@ S2+8pips)
Profit = +71pips

All of these trades yielded:

Total Profits: (+32pips +68pips +102pips +32pips +71pips) =+305pips

+42pips from Buy Stop @ UpperBand IEMC Strategy and +32pips from Buy Stop Pivot Level
Strategy were not recorded as these trades did no get triggered.
This is how it all happened: (see attachment)

This system has so many variations depending upon price behaviour from break of new day.
Thisn is just one variation. subsequent ones will follow shortly.
Hope I get good critics.
Thank you
atomoore

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173pips on GBPUSD in one day, under 5hours!!!

VARIATION 1B
173pips on GBPUSD in one day, under 5hours!!!

Hitherto Ive been trying the system on EURUSD, harvesting not less than 200pips on daily
basis.
I traded GBPUSD using the same strategy and harvested 173pips today 20/05/2011
To make things simpler, I used an Autopivot calculator Indicator sthis time, which made trading
today a lot easier.
Find below the trades that fetched the 173pips in one day, under 5hours!!!

Price Behavior Analysis for Variation 1b - Bullish Sentiment

So, I placed the following trades with the following expectations:

Sell limit @ upper channel closing @ lower channel for 27pips
Buy limit @ lower channel closing @ upper channel for 27pips
Buy limit @ lower channel closing @2nd resistance for 60pips
Buy stop @ upper channel closing @ 2nd resistance for 33pips
Buy stop @ 1st resistance closing @2nd resistance for 26pips

This is how it turned out ..

Price Behaviour Analysis For Variation 1b - Bullish Sentiment

Sell limit =27pips

Buy limit = 27pips
Buy limit = 60pips
Buy stop =33 pips
Buy stop=26 pips

Total profit = (27+27+60+33+26) = 173pips

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Originally Posted by GicaEric

...p.s. atomoore I forgot to ask you about Stop Losses. Do you use any?
Eric, my strategy is basically a hedging strategy. Whenever I go short or long, I have a reverse
trade in the appropriate direction. This way, my risk is contained. So no I don't use SL but
Hedging does the job SL will do. Besides, I monitor my trades quite often. This is Business.
Igive it all my attention. I think Forex Should be taken as a full time job cos it's got the potential
to make you a millionaire, in a way your so called full time job, 8/5 can't match.
However, I'm working around the mathematics of Hedging my strategy. When this is done. I
wouldn't have to worry about Placing SL nor monitoring my trades , once placed.
Anyway,have you got any material on the mathematics of hedging? Like how to play around your
Lotsizes whilst going both Long and Short on the same ccy pair at the same time?
Please keep me posted.
Thanks Eric
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hat's a good question flapper. I have a joint account. We're actually 3 people trading from the
same account, so that everybody has it's own pairs, and everybody has to make weekly reports
describing their pairs' behavior and forecasting their suitability for the upcoming week.
As I mentioned we have a composite strategy based on certain set of systems that we use.

Some of the systems are very mechanic straight forward like news trading, basic breakout
strategies, weekly pivot point strategy (which I will describe), some range bound bounces and
breakouts, trend trading, fundamental trading and I'm thinking of adding a simple scalping
strategy (not developed yet). Each one of us has it's own duties and it's own expertise that we
each give our thoughts about specific pairs and plot them on our weekly trading portfolio. So
basically there is no CONSTANT trading rule.
For ex. if a pair is ranging, we filter it to the range bound strategies, if it's trending, we filter it to
the trending strategies. If it's undetermined, crazy as we are, we filter it to the mechanical
systems. EVERY PAIR MUST BE TRADED. -So with this in mind, my friend actually has a joke
which he says: "If you can't make 10 pips from a pair within a week, than you're not worth
living!". Fair enough, now you must be wondering WHERE'S THE MONEY!
So let me tell you that I can only describe you my own strategy which falls into my expertise
area. As for the others that my partners use, sorry. Maybe I'll persuade them to share it with you
in this forum (which I really love).
Bare in mind that, what I am about to tell you may sound very crazy. In which case I don't really
care, if it works for you fine, if it doesn't... Well I'm sure you'll figure it out something else

Strategy 1 (The easiest and simpliest)

First thing:
Calculate the WEEKLY PIVOT POINT (Last week's H+L+C/3, which is is a simple Mean
Average formula of high low and close, I'm sure you all know it) and plot it in your chart. That's
all you need (not other indicators).
Second thing:
Sunday evening when Sydney opens (my broker opens the trading platform at: 23:15 GMT+2,
but I don't enter any position until 00:00 GMT+2 because of the enormous spreads)
BUY: If the price opens under the WPP (Weekly Pivot Point). T/P=WPP, S/L=none.
SELL: If the price opens above the WPP. T/P=WPP, S/L=none.

1st Note: You only enter the position if and only if the opening price from the WPP is bigger than
20 pips (+the spread).
2nd Note: If the trades didn't hit the T/P within the week, CLOSE them no matter what in Friday
16:00 (GMT+2) dead.
3rd Note: If the T/P wasn't hit for 5-10 pips (depending the T/P size and pair's volatility)
MANUALLY CLOSE it.
That's it. Now you can try it this on your own and see what results are you going to get. Bare in
mind that, this is not suitable for small accounts.
My biggest drawdown was: -1400 PIPS within a week (this actually happened when G15
decided to artificially lower the YEN after the earthquake).
My largest up streak was: +1580 PIPS within a week (I don't remember when it happened)
But the average I'm getting from this strategy only is (~ +1500 PIPS/ month) -Last week golden
(+1080 pips)
And the reason why I'm not using any EA's flapper, is that I really love this job. And second
thing: there are times when I decide not to trade this strategy, or sometimes I filter some pairs,
which I think the EA would be useless in this case. But if you could develop and EA trading this
strategy, be my guest. I hope you remain happy with it.
Anyways, I hope I didn't confuse you guys. I'd be happy to help you.
Have fun.
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